I read with much disappointment an article in the CU Journal that you are spearheading another effort to access TARP money for credit unions.
Credit Unions cannot, under any circumstances cost taxpayers money. Not only will this jeopardize our tax exempt status and separate insurance fund it is absolutely in oppositon of the seven principles of cooperatives, which we hope to remain, a financial cooperative.
Credit Unions were offered taxpayer money after the Great Depression and although Edward Filene was in favor of it, Roy Bergengren (first president of CUNA) opposed it saying
(a quote from CUNA’s website):
“To him, it meant destroying the vital principle of the whole movement by converting a community enterprise into an agency of the government. To teach people how to help themselves was more important by far in times of depression than at any other time.”
That’s what we HAVE to do. Figure out a way to help each other. I understand that many credit unions in the California and Nevada Leagues’ (your former employer) membership are hurting. One solution, of course is merger and another would be for them to convert to a Mutual Savings Bank to gain easy access to TARP.
CUNA’s National Brand Campaign states “Where People are Worth More Than Money.”
If we take TAXPAYER money to bail out a few COOPERATIVES what does that say about CUNA?
Credit Unions celebrated their 100th birthday recently, I for one am proud to have devoted the last 28 years of my life to furthering the movement. I’d hate to see your name in the history books as the one that helped destroy it.
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January 14, 2009 at 5:45 am
Andy LaFlamme
Well said Denise. Taking any amount of taxpayer money when we are tax exempt is about as dishonest and shady as it could gets (in my opinion).
Keep credit unions cooperative, self sufficient, local, and member owned. Do not bring government money into this movement…please!
January 14, 2009 at 12:58 pm
CU Potential
Excellent post. The knee jerk reaction when one group receives (relatively) free money is to say, “What about me?”. However, CUNA should recognize that taking TARP money will do far more harm than good, not only for the reasons described above, but for the psychological impact on current and potential members.
I hope CUNA realizes that potentially weakening the credit union position only harms themselves. CUNA serves credit unions, after all, not the other way around, and without CUs, they’d just be NA.
January 14, 2009 at 3:20 pm
Denise Wymore
@Andy – nice. Wow, I never looked at it from that angle – but that really smacks of nasty.
@CU Potential – sometimes I really don’t think CUNA understands what business they are in. You are so right – I know many credit unions who ONLY continue to pay dues because of the governmental affairs support (aka – keeping credit unions from getting taxed), so how ironic if CUNA is the reason we GET taxed….wow!
January 14, 2009 at 4:55 pm
Credit Union Warrior
Not only am I sickened that credit unions would even consider accepting TARP funds, I’m disgusted that the public isn’t outraged about the release of the second half of the $700 billion TARP program.
It’s clear at this point that CUNA and NAFCU are willing to mortgage the entire movement’s future because of a few bad apples. It’s also clear that they care little about the reputation cost associated with accepting taxpayer money. I’m further convinced that no matter how much small to medium sized credit unions complain about our trade associations’ actions, our voices will continue to be muted by big, poorly managed credit unions that deserve to live with the consequences of their actions.
The problem runs deeper than Mica, Donovan, etc. The problem also rests on the shoulders of those who are responsible for electing league and trade association boards. Too many misguided people have decided that pursuing TARP is a good idea…and too many of them are in the wrong positions. There is absolutely no way that someone who is charged with serving and protecting the movement could in good conscience lobby for inclusion in a program that will destroy public goodwill and the justification for our tax exemption forever.
Anyone who cares about the movement needs to consider: a) Pleading with current trade association leadership to reconsider their stance on TARP; b) Contacting your legislators to let them know that you and your credit union do not support TARP, let alone credit union participation in TARP; and 3) Working to have any TARP supporting elected credit union or trade association official removed from office. Better yet, why not do all three?
January 18, 2009 at 11:53 am
tinfoiling
It is always amazing when trade association personal speak on behalf of the core group they are supposed to represent without taking some consideration of opposing views. For a matter as important as this the view should be by consensus not just a single talking head.
January 19, 2009 at 4:21 am
Denise Wymore
@Warrior and @Tinfoiling,
Thank you for your support on this. It means a lot. I’m afraid there are lots of credit unions out there that have not picked up their CU Journal since before the holidays and have no idea this is going on.